Prospects of further action to tighten the Chinese economy increased yesterday as official figures showed growth surged to 11.9 per cent during the second quarter, while consumer inflation skirted a three-year high point at 4.4 per cent last month.
The surprisingly strong rise in gross domestic product and the CPI, coming in spite of government tightening measures during the last year, prompted forecasts of another interest rate rise and the possible scrapping of a tax on bank deposit income.
The National Bureau of Statistics data will aggravate concerns some sectors of the Chinese economy risk over-heating. Beijing so far appears to be relatively relaxed about the sustainability of the boom.
